 "Sebi bars Vista Management Services from raising public money")
Mumbai: Continuing with strict action against entities raising public money illegally, Sebi has restrained Vista Management Services from mobilising funds from investors and barred the firm and its directors from accessing the securities market.
The market regulator found that Vista had garnered Rs 1.86 crore from 175 investors through issuance of redeemable preference shares (RPS) and had “prima facie” violated various norms.
Sebi observed that Vista’ issue was made to more than 50 people which, under the rules, made it a public issue of debt securities requiring compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which it failed to do.
“I am of the view that Vista is prima facie engaged in fund mobilising activity from the public, through the offer of RPS and as a result of such activity has violated the provisions of the Companies Act,” Sebi Whole Time Member S Raman said in an interim order.
Accordingly, Sebi has asked Vista to “not mobilise funds from investors through the offer of RPS or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly, till further directions.”
Further, the company and its directors- Dev Kumar Panda, Biranchi Narayan Mishra, Manoj Kumar, Fayaz Khan and Bijay Kumar Swain–are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
Vista and its directors are “restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities markets, either directly or indiretcly till further directions.”
Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of redeemable preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
While asking Vista to provide a full inventory of all its assets and properties, Sebi has also asked the company to within 21 days from the date of receipt of the order submit all relevant and necessary particulars sought by the watchdog.
PTI
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